Goldilocks’ Comments and Global Economic News Wednesday Evening 12-13-23 Good Evening
Today, we will hear from Jerome Powell during the Federal Open Market Committee meeting.
Many economists foresee a cautious approach in today’s meeting. Most agree, there will be no rate hikes at the end of the day’s meeting. Time will tell on this one of course, but it is expected that policy reviews and preparing for new directions in the coming year will be at the top of their list and on the table.
Traders are pricing in future rate cuts beginning in May of 2024. Some believe that rate cuts will begin a little bit earlier.
We are going to have a short period of time between January and May of 2024 for increased demand of currencies rising to their peak levels before interest rate decreases begin.
This will allow the local currencies in the East that are newly beginning to be traded at the beginning of the year a chance to grow in value.
© Goldilocks
CNBC Link
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How do Interest Rates Affect Currency Exchange Rate?
“In simplistic terms the higher the interest rate, the better return you get by owning the currency and so you are more likely to want to own that currency – the converse being true with lower rates.” This increased demand for the currency strengthens its value against other currencies.
https://www.nasdaq.com
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DOLLAR DOMINANCE MONITOR (👇The next 4 Articles👇)
The US dollar has served as the world’s leading reserve currency since World War II. Today, the dollar represents 58 percent of the value of foreign reserve holdings worldwide. The euro, the second-most-used currency, comprises only 21 percent of foreign reserve holdings.
But in recent years, and especially since Russia’s invasion of Ukraine and the Group of Seven (G7)’s subsequent escalation in the use of financial sanctions, some countries have been signaling their intention to diversify away from dollars.
Over the past twenty-four months, the BRICS (a grouping of Brazil, Russia, India, China, and South Africa) have been actively promoting the use of national currencies in trade and transactions. During this same time, China has been expanding its alternative payment system to its trading partners and seeking to increase international usage of the renminbi.
https://www.atlanticcouncil.org/programs/geoeconomics-center/dollar-dominance-monitor/
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https://www.atlanticcouncil.org/programs/geoeconomics-center/dollar-dominance-monitor/
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Key takeaways:
The dollar’s role as the primary global reserve currency is secure in the near and medium term. The dollar continues to dominate foreign reserve holdings, trade invoicing, and currency transactions globally. All potential rivals, including the euro, have a limited ability to challenge the dollar in the immediate future.
All five BRICS members are seeking to reduce their reliance on the dollar. The group has so far been unable to make significant progress on dedollarization efforts, including the creation of a common currency. However, because of their combined share of global GDP, BRICS can pose a long-term challenge to the dollar’s hegemony.
Alternative financial plumbing may be a leading indicator that precedes any shift away from dollars. To assess the dollar’s relative strength at present, and anticipate its future status, it is critical to track the rise of competing financial settlement networks and payments architecture.
With the goal of creating a multipolar and less dollar-dominated financial system, China has accelerated its development of alternative payment systems. China’s Cross-Border Interbank Payment System (CIPS)—a renminbi settlement mechanism—has grown rapidly to include 119 direct and 1,304 indirect participants around the world.
China has actively exchanged renminbi directly with its trading partners’ central banks to boost their renminbi reserves.
Russia is now the most active client of the People’s Bank of China. The two countries’ central banks can exchange up to $1.4 billion worth of rubles and yuan every day.
If Beijing were to allow more free movement of renminbi in and out of the country, it would significantly enhance the international appeal of its currency. However, even without a policy change, the renminbi possesses some characteristics of a reserve currency and can continue to slowly grow its share in global payments.
https://www.atlanticcouncil.org/programs/geoeconomics-center/dollar-dominance-monitor/
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https://www.atlanticcouncil.org/programs/geoeconomics-center/dollar-dominance-monitor/
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Central Asian Economies Look To Digitize Silk Road Briefing Link
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“First US Crypto Accounting Rules to Capture Token Highs, Lows
* Crypto to be measured at fair value under new FASB rules
* Rules go into effect in 2025 but earlier adoption allowed”
Okay, here we go. The Financial Accounting Standards Board (FASB) ON CRYPTO WILL GO INTO EFFECT THE EARLY PART OF 2025.
This does not mean that we have to wait for new values to start showing up and floating upwards to these real values that will be adopted the early part of 2025.
The FASB said in this article that crypto adoption can be done earlier. This means that all of next year we are going to see a float in the cryptocurrency sector of the market begin rising to their real value with a culminating point at 2025.
At that point, we will see standard values or a revaluation in cryptocurrencies that will survive and thrive in the new economy.
Remember, these new tokens are being attached to our current traditional assets, and these two Market sectors will be supported by gold and other commodities.
© Goldilocks
Bloomberg Tax Link
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The Coming Economic Transfer – The Economic Ninja
https://www.youtube.com/live/UQIQoUzxMo4?feature=shared
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They Will Create 50% Stock Market Crash to Usher in CBDCs in 2024 Warns Edward Dowd
https://youtu.be/PCyUcyUVmEA?feature=shared
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👆 Potentially, this is possible. Yet, we are going to see some sectors of the market go that far down or more throughout the year in 2024 until they reach a real value.
We are expected to be in a Bear Market for the first half of the year. And then, we are hoping for the best and a bull market to surface.
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Iraq, UAE agree to finance trade, imports in UAE dirham Middle East Monitor Link
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FedNow may have spurred RTP adoption Banking Dive Link
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Imagine waking up, and the value of your currency was cut in half overnight.
This is the reality for the people of Argentina.
This is why you have some gold.
Read: https://x.com/goldtelegraph_/status/1734997469703066104?s=46
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FOMC Press Conference December 13, 2023
https://www.youtube.com/live/pwbKwGjhuhk?feature=shared
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Breaking News:
The Fed holds rates steady.
@ Goldilocks
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The Federal Reserve on Wednesday held its key interest rate steady for the third straight time and set the table for multiple cuts to come in 2024 and beyond. 3 mins ago (Posted at 2:03 pm ET)
https://www.cnbc.com › 2023/12/13
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* Keep in mind. The Federal Reserve has never in the course of history lowered interest rates unless things are going bad.
@ Goldilocks
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Can you feel it yet? Everything changes in 2024. Get on the right side of these assets… NOW
@ Goldilocks
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Freedom Fighter ©
🛎Cross Border payments connecting ASIA and (MENA – Middle East & North Africa)
🟢When you connect cross-border payment systems you have the technology to connect CURRENCIES & ASSETS❗️
🛎PAYING ATTENTION YET❓😃
European Business Magazine Link
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Warren Buffett Has Been Involved With XRP Since 2014! Never SEEN Before Evidence Has Surfaced! [WOW] https://youtu.be/_Szce1MXkkc?feature=shared
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Cop28: landmark deal to ‘transition away’ from fossil fuels agreed – as it happened The Guardian Link
👆 Goldilocks pointed to this article
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CFTC chair says most cryptocurrencies are commodities under current laws Crypto Slate Link
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Latin America Takes the Lead as Stablecoin Global Settlements Reach $7 Trillion Crypto Potato Link
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Next year, we are looking at several countries beginning to trade in their own local currencies.
This could lead to not enough buyers for the US Treasuries. What is the end result?
The dollar will fall, and gold will rise.
© Goldilocks
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All roads lead to gold, and gold will set us free.
© Goldilocks
